Equatorial Guinea declared plans to build two new oil refineries, among other vitality ventures worth $1 billion; its energy minister stated, in an offer to diversify an industry that gives over 90% of its foreign income.
Minister of Hydrocarbons and Mines Gabriel Obiang Lima stated the new refineries would refine 30,000-40,000 barrels per day (bpd) of oil, including from the vital Zafiro offshore field, said at the Africa Oil Power Conference held in the capital Malabo this week.
Other plans include more oil product storage infrastructure, a methanol-to-gasoline plant and the expansion of a liquefied natural gas (LNG) project, the assertion added.
“Phase two is the investment year. For a few years, we have been exploiting our resources and exporting them, however, now is the time that we get to the stage of refining,” Obiang Lima stated, citing ten new public-private collaborations the nation hopes will appeal to foreign funding.
Equatorial Guinea, an associate of the Organization of the Petroleum Exporting Countries, has struggled to draw investment to begin steady declines in production as newer entrants, including Mozambique and Namibia garner interest.
U.S. oil giant Exxon Mobil plans to shed its operations in the nation along with $25 billion worth of other assets worldwide as it seeks to unencumber money to focus on a handful of mega-ventures.
Equatorial Guinea Tuesday awarded an offshore bloc with the linked Fortuna fuel development venture to Russia’s Lukoil and national oil agency GEPetrol after the grant was reclaimed from Ophir Energy this year.
Recipients of other blocs involved U.S.-based Noble Energy in addition to Nigeria’s Walter Smith, which picked up a grant abandoned by Marathon oil.